tv Bloomberg Markets Americas Bloomberg August 17, 2017 12:00pm-1:00pm EDT
from bloomberg world headquarters in new york, here are the top stories on the bloomberg and from around the world that we are following. president trump slamming some republican senators who are publicly rebuking him over his charlottesville comments. making freshnnon comments to "the daily mail," theowing an interview with american prospect that made news overnight -- how toxic are relations between the president and the american -- congress right now. is there any hope to get things like tax reform passed? the turnaround at cisco has not taken hold. we'll hear from ceo chuck robbins on the company's plan to become less dependent on hardware. big to is spending compete with amazon, and it is showing up in earnings. shares are lower as walmart issues a little warm forecast.
-- issues a lukewarm forecast. recapping breaking news first from barcelona -- many people injured by a van on barcelona's ramblas -- a very touristy area of barcelona. there has been a massive trampling on the ramblas and people are being encouraged to stay away from the area. we have very little information on what exactly happened in this part of catalonia, in fact, and will be do know is the prime minister is in touch with all authorities. we will continue to bring you up to date, but once again, las ramblas, a spot popular with tourists, has found itself the victim of a crime. a man lowering -- mowing down -- it's been a local paper reporting there was a shoot out. that report came a few moments before we learned of this particular incident.
these vehicles have been used in a series of terror attacks in europe in recent months. we know barcelona is part of catalonia and there has been a struggle for independence in that part of the world for decades as well. abigail doolittle is with us now. we're halfway into the trading day, and i guess you haven't been particularly looking at spanish asset classes -- obviously the european closes just happened, but 10-year yields have moved a little bit, abigail. what is happening here in the u.s.? silent: we're looking at decline -- solid declines for the maybury -- major averages. so far, the tragic, breaking news from barcelona, not seeming to have too much of an effect on stock-trading action here in the u.s. what does seem to be training -- impact trading in the u.s. -- uncertainty. if you look at an intraday chart of the s&p 500, you see a decent
decline that came behind a speculation of rumors that gary cohn, the national economic council director, could be resigning from that post. later in the 10:00 a.m. hour, axios said that number was 100% false, and not so long accident, the white house that gary cohn -- not so long after that, the white house said gary cohn will not be resigning. last leg lower might reflect the tragic events in barcelona that we don't know much about. the tech-heavy nasdaq down more than the s&p 500. the dow, we are at lots of losers. adp down. bill ackman of pershing square said the stock could double. nonetheless, not getting much of a bit. cisco lower after the networking giant beat estimates for the fiscal fourth quarter, the guidance was light. net app down 6%.
.pple down about 1% there doesn't appear to be new there, but this is a stock according to paul sweeney, reacts more so when there is a bearish or bullish case. the stock is down 1%. let's look at tech relative to the s&p 500 in the bloomberg. g #btv 114 people what we are looking at is an equal related this equal-weighted version -- 114. what we are looking at is equal weighted. technology is going toward multi-year lows. this may suggest that could be some sort of weakness ahead for technology above and beyond what we are seeing their. finally, let's rounded out with retail -- we have big retail movers. alibaba up 5%.
the chinese online giant hitting a new record high after they put up a massive beat -- 27% on the bottom line. they put up in a dollars per share in earnings. walmart, not so much, down on disappointing guidance for the current quarter on online spending. down 7%.ds the quarter was decent. vonnie: the parent of victoria's secret. already, abigail doolittle, thank you. let's just make caps on headlines out of barcelona -- a man plowing into a crowd in the catalonia region, causing panic and injuries according to the adp. a van jumped the sidewalk. we had heard there was trouble in a marketplace close by. shots had been fired. the local police force telling people to stay out of the area and keep calm. mariano rajoy is in contact with the local authorities.
photograph shown by public broadcaster in spain says that three people were lying on the ground in the street of the northern spanish city. let's go to our madrid bureau and our reporter, estevan. let's ask you what is ugly you do now about this incident, and about the area. estevan: what we know so far is the police is saying -- the regional police is same there was an incident in barcelona, a touristic area. included regional tv stations saying there are -- there are at , and thereeople dead is a pulmonary indication that it was a terrorist attack, but those facts have not been confirmed by police yet. vonnie: cap the u.s. consulate
in barcelona same they are aware of a reported incident at ramblas and there is to avoid the area. an areacatalonia is that has been for independent for a long time. -- independence for a long time. how long has it been since there has been an attack like this? all, thewell, first of issue is totally -- an to the situation. i wouldn't establish any comparison or relation with the political situation in catalonia. i think it is related to the france, happening in london. at least with the information we have so far.
vonnie: we don't know what is behind us. there are many others. when do we anticipate some kind of official update from the ?ocal police esteban: so far the facts are quite pulmonary, and it seems the events are still best preliminary. it seems the events are still developing -- preliminary. it seems the events are still developing. duarte, thank you, our madrid euro. -- from our madrid bureau. we will bring you more details as we get them. meantime, turmoil in the trump administration. senior aides distancing themselves from president donald trump's statement that he blames
both sides for the violence in virginia. steve mnuchin says he does not stand with trump on neo-nazis, but neither steve mnuchin nor anyone else in the inner circle has resigned and they have not publicly chris as the president either. the weather -- publicist -- criticized the president either. we have two interviews with steve bannon to discuss. -- and martyn and shanker from washington. it is funny how the news cycle moves on. we are asking questions about this steve bannon interview. steve bannon is touting success because the dialogue has moved on. he is not wrong, is he? shanker: whether or not he has taken a venture situation and spun it in a way that makes him look smart, it has changed
the dialogue this morning. vonnie: what are people saying in washington dc about the question mark -- washington, d.c., about this? steve bannon's and not going anywhere. >> it remains to be seen whether the president makes choices about changing up his personnel. there are things that would be embarrassing including steve bannon basically saying the u.s. does not have a military solution or military option in north korea. he says "they got us,," which makes the president with his bellicose language seen the he is making statements he cannot back up. steve bannon it was clear he believes that the u.s. were to take military action against north korea, that would lead to millions of deaths and that would tie the hands of the administration. whether or not president trump will accept that kind of language leaking into the present it remains to be seen, but it does so far seem steve
bannon remains on the payroll, and president trump could make a change, but that does not seem to be happening. vonnie: he talktalk usually about china, and there is nothing more the administration would like now, marty, then to focus on domestic issues. domestic issues are not solved, and there is another weekend coming up. what are people preparing for the white house and in washington this weekend? no one in this newsroom those far from their phones on the weekend. it is never a dome moment. yes, donald trump would like to change the narrative. he has turned the whole question of what happened in charlottesville to an issue of theutes -- statues, and polling shows a lot of americans agree with him -- that the moving of these confederate statues is foolish. that, too, is trying to change the narrative about those controversial comments in charlotte. vonnie: -- charlottesville.
speakingave you been with a republican lawmakers as they try to have a vacation, recess, or face constituents -- what are they saying behind the scenes about the last week or two? toluse: there is deathly no vacation in the era of president donald trump. he keeps them on their toes, and it makes them have to respond to the things he is saying. a lot of them are responding not only behind closed doors, but they are compelled to respond publicly via twitter or statement. president trump got into a public spat with senator lindsey graham of south carolina, with the president saying he was seeking publicity by criticizing the president's handling of charlottesville, and lindsey graham felt the need to respond. the same thing happened with senator jeff flake of arizona. he will be going to arizona next week. he did not wait to get there flake,attacking senator saying he is happy there will be a primary opponent for that republican senator.
even though the risen august recess, there is no -- even though it is an august recess, there is no recess from president trump. several feel compelled to respond to what he is saying in the public debate right now. vonnie: marty shanker, there are 12 is slated days in september. can congress go its own way and get something passed at least in the month of september? marty: they had better. they don't want a government shutdown. vonnie: well, maybe they do -- we had one in 2011, 2013, 2015 -- it is about time for another one, no? marty: yeah, and donald trump would probably agree with you -- maybe it is time to get this out in the open. i think both democrats and republicans in the congress say they do not when a government shutdown. steve mnuchin does not want one. mulvaney does not want one. so, if they somehow reach one -- some deal, they could probably get it done in that short amount of time and then they can move
on to the budget. vonnie: yeah, so we have a continuing resolution, toluse olorunnipa. let's take that as our base case. the president wants to talk about infrastructure. the house wants to talk about tax reform. you know, where do we start? toluse: well, if you take the press conference on tuesday as an example, that is, sort of, what we have seen time and time again with president trump. it was supposed to be a press conference about infrastructure. he came out and had an executive order he wanted to talk about. he won to talk about reducing the timeline for permitting, but as soon as he stopped speaking and started taking questions, the whole thing went off the rails and he started making comparisons between the nazi groups and counterprotesters, and that led to a number of republicans feeling forced to speak out. it led to members of his business council abandoning the president, and the president having to disband the business council. now no one is talking about infrastructure the way the
president wanted to talk about on tuesday, and that is the risk that he faces with all of his other agenda items -- when he tweets something, say something, takes questions, and starts to get off message, that the entire policy agenda seem to get off track. vonnie: our thanks to both of you. that is toluse olorunnipa and marty shanker in washington dc. let's get some first word news. there is mark crumpton. mark crumpton: an update on the top story you were telling us about that authorities in spain anda van jumped a sidewalk hit pedestrians on las ramblas. authorities describe the incident as a massive mowing down of people. several injuries have been reported. a local paper is reporting that was issued out in one of the city's markets. we are getting reports that the driver of the van is holed up in a nearby bar. the prime minister mariano rajoy says he was in touch with
authorities, without suggesting iteris -- terrorism was suspected. -- u.k. mala european union the u.k. may allow european union to visit without a visa. eu nationals would still need to get permission before working, settling in the u.k.. the home office is post-brexit immigration plans will be published within weeks. the united nations humanitarian chief says yemen remains the largest unitarian crisis in the world. speaking in the yemeni capital today, jimmy mcgoldrick said there are more -- more than 20 million people in the country and assistance of basic needs -- in need of basic needs. the war has killed over 10,000 civilians, displaced 3 million people, and pushed the company to the brink of famine. seel laureate malala uses has been accepted to the university of oxford.
the 20-year-old activist shared one of her acceptance to the school on twitter. she plans to major in philosophy, politics, and economics. acclaim inernational 2012 after she was shot in pakistan for speaking out on the right of girls to go to school. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. vonnie: mark, thank you. we want to bring you an update on an unfolding story -- a man mowed down pedestrians in barcelona on las ramblas, a spot popular with tourists in the spanish city. police said many people were injured. catalonia police are saying the search was under way for the perpetrator of the attack. according to local reports, the -- the owner of the van is said to be held up in a nearby bar.
is underway for the perpetrator of the attack. according to local newspaper reports, the driver of the van is said to be holed up in a -- whichr according to is published in barcelona. we also know mariano rajoy is out to all authorities did we will continue to keep you updated on this -- authorities. we will continue to keep you updated on this. yesterday the administration tried to push forward and tax reform and trade agenda. later this month, central bank watchers will be tuning into ecb theident mario draghi at fed's jackson hole conference. that is next week. here to lay out the scenarios, kathryn rooney vera. we were prepping for this, and you told me you had been speaking about the idea of tax reform. before we ask you what kind of conclusions you came to, does
tax reform even get within a hair's breadth of being done in 2017? vera: that is an interesting way of putting it. i do think you get tax cuts. a broad overhaul is highly unlikely, and i think that is what you are alluding to. some form of tax cuts, i do believe, will be, if needed to be rammed through. i'm talking about a form of bush-style temporary tax cuts is my basin area. vonnie: what might that look like? akthry -- kathryn: something close to island, 12.5%, which would help repatriation flows, glenn pivot is the primary focus of the team. if we're going to be looking at individual taxes, we would also
see a temperate tax-cut in the same vein as we saw, as i mentioned, under the bush tax cuts. something is going to get done because this administration desperately needs a legislative victory. vonnie: for why couldn't it come in infrastructure, for example, which seems to be more palatable to a lot more constituents. kathryn: sure. that is what a lot of people are saying -- why go for health care , which is more divisive, when you couldn't prioritize infrastructure with brian -- bipartisan support before hand. -- could have prioritize infrastructure with bipartisan support before hand. the midterm elections next year -- a lot of people are saying they will lose, but they actually favor the republican party in terms of the seats that are up for grabs. vonnie: the districts. kathryn: the districts. over the next four years, i think we are going to get some tax reform -- not just tax cuts, which should -- and i don't hear a lot of people talking about this, but in a comprehensive tax
reform, you could fund infrastructure spending from the private sector, which is what the republican congress wants to a repatriation program that allocates a certain proportion of those moneys to an infrastructure bank, for example. vonnie: wise in the conversation veering in that direction -- why isn't the conversation very and that direction, then? kathryn: there are other things that are sucking the oxygen, i guess, from talk about policymaking at this point, which is a big disappointment with regard to policy and the limitation of that. one of the risks the market is responding to is the lack of cohesive support to rally behind the president's initiative from his own party. so, i think that is the biggest risk of this point. i do contend we will see some form of tax cuts from here through year end, even if it is temporary. vonnie: what if we get a market correction because of more rhetoric surrounding venezuela,
china -- north korea -- take your pick? kathryn: we have not seen it yet. we haven't seen the risk of north korea nuking guam or having the capacity to do it. it hasn't been anything. in fact, volatility have reached record lows. i do wonder what could precipitate a correction at this point. i mean, economic expansion continues, and as janet yellen said, you don't have growth that dies of old age. so there has to be some impetus to, you know, induce a correction or a recession. vonnie: so, it sounds like you are looking for something similar to what the president is looking for economic-growth wise. when do we had 3%? kathryn: 3% is impossible without tax reform. you could get 2.8% if we get brought tax overhaul. i don't expect we can get 3% in the near term unless a miracle
happened than we did get broad tax reform. my key focus is on corporate tax reform. if you look at the undercurrents of u.s. gdp, what is lacking is total investment. vonnie: catherine, -- we will have to bring you back. kathryn rooney vera, thank you. we want to bring you up-to-date on an unfolding story in barcelona, spain. a van mowing down pedestrians on las ramblas, a popular tourist spot. catalonia police are confirming there were deaths in the incident. rebukingre also reports of a shootout at a particular market. keep you updated. this is bloomberg. ♪
we want to update you on an unfolding story in barcelona, spain. a van has mowed down pedestrians on las ramblas, a spot popular with tourists in barcelona. catalunya police confirmed there were dusts -- catalonia police confirmed there were deaths. local reports say the perpetrator could behold up in a nearby restaurant. report says the driver is in a bar. now, we're also hearing from catalonia police that it is being treated as terrorism, but the motive cannot be confirmed. let's go straight to madrid now duarte who is with bloomberg and has the latest. what is the latest from police? trying: we know they are to find the perpetrator of the attacks.
we know from the state owned newswire, there is at least one person dead. know.s basically what we you already mentioned the attack happened in las ramblas, which is in a crowded area of the city. vonnie: generally considered one of the top tourist destinations. plenty of open-air stalls and places to walk. thatuld be a stretch wouldn't be a stretch to imagine at 5:00, 6:00 in the afternoon there would be a lot of people in the area. yeah, spain and catalonia has benefited from very strong touristic system attacksue to terrorist in other parts of europe, and
this is the first terrorist attack in a very long time here in spain. vonnie: we are hearing from the epee -- the ap that police in spain are confirming fatalities. they are considering it terrorism. this is a typical response. once there are multiple people involved, multiple civilians nowadays, authorities immediately treat something as terrorism. esteban: it is confirmed that it was a terrorist attack. unclear what the motivation of the perpetrator, and there is an operation ongoing, some information is still predominate. vonnie: you know roughly how many people live in barcelona and what kind of disruptions there might be?
we know public trust petition has been shut down for the moment, and the local police operation is asking people to stay away from the area. esteban: yeah, that is basically what we know so far. hast from that, the mayor issued there will be a crisis. that is basically what we know. vonnie: and i want to mention again, the local police operation is saying it is not possible to confirm the motive for this particular attack. can you remember when the last in any part of spain -- whether it is domestic terrorism, outside terrorism, related to a cause, or anything else? esteban: the spanish police and the catalunya police have been
successful in finding and arresting people before attacks are perpetrated. so, the country was in high alert already, but as far as everyone in the last years, we have not seen any terrorist attacks. the most important by far ago,ned more than 10 years and maybe you remember, it was a massive attack against the metropolitan trains in madrid that left several people dead. but that happened at least 10 years ago. but in the last weeks and months, there were several people arrested in connection with terrorist operations. vonnie: our thanks to duarte.g's esteban
he is in madrid. we will bring you the headlines as we get them throughout the afternoon. just to confirm, the catalonian police saying the motive cannot be confirmed, they are however treating an incident such as this as terrorism, as is always the case. the ap saying there has been confirmed fatalities, and we know that at least 10 people were mowed down by a van in the las ramblas district in barcelona. let's get a quick check on the major averages in the u.s.. we know they have been working around a little bit today. down a little further today -- the dow jones industrial average down 145 points. the s&p 500 is down .8%, 20 points. and the nasdaq composite index is down 1.1%. it is the laggards. let's get more details now from abigail doolittle. abigail: we are certainly looking at saw declines for the major averages. as you mentioned, they are on pace for their worst day in a
week after a big fella plastic on geopolitical -- after the big selloff on geopolitical tensions. we see the s&p 500 took a leg lower on rumors gary cohn could be resigning from his national economic council position. that was refuted it we saw a small leg higher, and then as the report of the tragedy in barcelona took place, we have a leg lower, and we are at session lows. the s&p 500 on pace for its worst love -- those in a week. -- lows in a week. we certainly have a lot of uncertainty at play here in the u.s. around politics, and of course, again, this tragedy around barcelona. let's look at the travel-related stocks because they are taking a leg lower as well. we see this steadily lower, but around the time of the headline of this tragedy in barcelona that is being considered potentially an active terrorism,
a steady leg lower. on pace for its worst day since the end of july and the lowest level since the beginning of may. a bit of selling here. this is true for the online travel agencies and the hotel stocks. if we look at expedia and priceline, we see the stocks are down. they had not been down as much as the events in barcelona. marriott and hilton -- though stocks had been down earlier. the uncertainty, typically -- these stocks tend to bounce back after the initial dip on the source of headlines and tragic event. we'll have to see whether or not that happens this time. finally, to round it out -- a haven check. earlier bonds had been selling off. now they are higher. we see this with the yield dropping by about one basis point, telling us investors are bidding up bonds. en bidding up the dollar. gold up ever so slightly, up .2%. vonnie: abigail doolittle, thank
you. the growing competition taking a bite out of walmart's bottom-line pictures of the retail giant plunging after reporting a disappointing second-quarter. ceo that melon sounded -- doug mcmillon sounded positive about the grocery business earlier today. doug mcmillon: the grocery business strengthened. vonnie: walmart also warned of a tepid third quarter. four more i want to bring in oliver chen -- for more, i want to bring in oliver chen. despite the less enthusiastic numbers, analysts are saying -- staying positive. it is pain walmart has to go through to move to the next step. oliver chen: that is true. online business group 60% to it are really watching that. salmart has had positive comp for 12 quarters. it just had the positive target.
that was nice. as well as positive store traffic -- that is a story here. think walmart is well positioned for what we think is a cautiously optimistic economy with a better consumer. vonnie: what about target with its advance on walmart. target is a tennant company compared to walmart. what possible damage could they do? oliver: there is a war here for lower everyday prices. there is a battle in offering consumers good value, and you see that at both target and walmart. gross margins are lower. the story for target is they are doing a much better job communicating value. the expect more, pay less mantra is coming together in terms of customer see more value a target as well. vonnie: ok. now, what is the forward guidance for walmart? it was a little bit tepid, but analysts expect a lot. analysts expect great guidance every quarter. oliver: the real bar was higher. pe is aboutmart's
17 times. the expectations were such that walmart would raise guidance earlier. they are looking for positive comps. if you contrast that against target, they are looking for more flattish comps. it is good guidance. vonnie: what about alibaba -- that also came in today, and you may not necessarily cover alibaba as much, but in both cases we are seeing online, you know, even more of brick-and-mortar's lunch, but brick-and-mortar is still the most messed part of retail in both places. oliver: yet, what -- yeah, what we see is the integration of physical and digital. there are too many malls in america. ps were down and traffic is negative at most. e-commerce growth is growing 30% to 60% at walmart and target.
the other melting, car pickup at 900 locations at walmart, and target restocked -- getting your goods, ordering them by 2:00 p.m., giving them the next day. a melding of the channels is essential. walmart has to use his assets. -- its assets. 90% of america is within 10 miles of a walmart. it needs to use the distribution stores. whether that the car pickup, pick up in-store, ship from store, try on in store. vonnie: oliver, you cover almost all of the retail industry, landscape. what kind of a season has it been? it feels like it has been rough for some, but for others, surprisingly good. right in there divergence here. two simple fight, consumers want value. expect more, pay less. save money, live better. one thing that resonates -- low
prices and promotions are very valuable to consumers right now. in the theme is digital -- the rise of online, and also how do you mix physical and digital? we have seen a bifurcation. luxury goods are doing very well. louis vuitton had 20% organic growth. we like tiffany. on the other end, we like value -- t.j. maxx, ross stores, cosco. vonnie: oliver chen of cowan and company. thank you. oliver: thanks for having me. vonnie: we want to bring you an update on an unfolding story -- that mowing down tourists -- on las ramblas. catalonia police confirm there were deaths in the incident, and the search is underway for the perpetrator of the attack. various reports have called it a terror attack. author reason not confirm the motivation.
policing there are multiple deaths and injuries in that massive -- that is there were -- mowing down of people. we'll bring you more as we get it. elle brands tumbled to its lowest level in almost six years, on a set of earnings that highlighted declining stained sword -- same-store sales. emma chandra is here with more. i will only point out once it is the owner of victoria's secret. emma chandra: they also cut the forecast for the second half of the year. i want to have at top line concerns you mentioned -- especially declining same-store sales. we put a chart here that shows what happened to them last quarter. 8%, worse thanl estimated decline of 7%, but what is more concerning for them is over at victoria's secret, l brands owns --
they fell by 4%. another chart we have shows you that a victoria's secret accounts for 60% of l brands revenue. while things like bath and body works did do better, they are worth half as much to l brands as victoria's secret is. vonnie: fascinating pie chart. the stock move today was spectacular. what can we expect in the days following? the first days after earnings we could have an outsized move. when most of that reverse? emma: analysts are reporting they are seeing some real concern, and one of the things they are saying is there has been a huge shift in what the consumer wants especially at brands like victoria's secret. tastes are changing among younger women. they want less fuss, things that are simpler, and other brands have moved into sit that space -- fill in that space.
and then e-commerce -- something we have been talking about all week is the fact that consumers are shifting away from bricks and mortar stores, as your p's guest was saying, this previous guests were saying, and moving ,n p we have another chart here g #btv 525. the purple line is amazon. powerave moved into recently, and they are doing better when you compare them with special retailers to there is a lot going on, and analysts are concerned about what the future holds for l brands. vonnie: emma chandra, fantastic. our stock of the hour. we would like to bring you up-to-date now on that unfolding aory in barcelona, spain -- man mowing down pedestrians in a spot popular with tourists in barcelona. it is called las ramblas. local media is reporting the
driver of the van is holed up in a nearby restaurant. police in barcelona say that was a white van that mountain the sidewalk, -- mounted the sidewalk and struck several people in the district. saying there are multiple deaths and injuries and are calling it a massive mowing down of people. one of the local tv stations citing a witness saying the van rammed into people at 80 kilometers an hour, zigzagging into the crowd. police are looking for the promotion. we'll bring you more as we get it. this is bloomberg. ♪
called it a terror attack. authorities have not officially confirmed that. police in spain confirming that are fatalities after that man slammed into pedestrians. lae barcelona-based " sayingdia" newspaper is police sources. we know it is being treated as a terrorist attack. it is being confirmed by catalonia police. they are treating this as an incident of terrorism. we do know the motivation has not yet been tied down to it we don't know what the motivation for the attack is. we'll continue to keep you up to date. meanwhile, the medallion fund run by renaissance technology as known for secrecy and high returns. billion producing $55 in profit over the last 28 years, but after the election of u.s. president donald trump, the
funds made a stunning change. during us now from washington is that reporter on the story, miles weiss. what is that change, miles? miles weiss: well, the fund had been closed for quite a while to outside investors. it is an employee-owned fund, and the employees have been limited to a certain amount of cash they can put into the fund, and in december, bridgewater lifted the cap by about 50%. it was quite a change because they had the limits for years. vonnie: yeah, that is stunning, especially at a time when we have been reading about a lot of funds trying to downsize -- trying to lessen the money that they manage. renaissance appears not to be concerned by that whatsoever. miles: traditionally they have been concerned because the strategy that medallion uses -- the computer-traded strategy --
depends on -- if there is too much capital, the strategy will not work. i'm not sure exactly why they lifted the threshold. they thought they could put more capital in the strategy without damaging its returns. vonnie: and it is working -- the fund received at least $2.1 billion in january. put that into perspective for us. it seems like a massive month of inflows. well, it wasn't just from the employees. it was from the partners in renaissance itself. the fund has been cap at about $10 billion by a couple of years and this would take it up to about $12 billion. this is one of the entities by which the partners and employees hold shares in medallion. it is possible that other ones also put in money, but we know it is at least $2.1 billion. vonnie: yeah, so tell us a little bit more about the strategy? do we know anymore -- is it
veiled in a shot of secrecy? miles: very much so. we don't know too much about it. it crunches a lot of data to predict price movements in a variety of global markets, not just stocks and bonds, but also futures and commodities, and the returns have been spectacular. 80% -- almost 80% before fees. about 40% after fees. vonnie: if your employees are investing a certain percentage of what they make back into the fund, and you are making profit, then that is all the more money to go back in. miles: as long as they are letting money and. -- in. traditionally what they have been doing is they distribute all their training profits during the year. it does not get above $10 billion. but they change that. vonnie: miles weiss -- it is a fantastic story. encourage everyone to have a look at the assessment.
our thanks to miles wife for joining us from our washington bureau -- miles weiss for joining us from the washington bureau. police in spain are confirming they are treating it as a terrorist attack -- and then not down pedestrians in the las ramblas district -- a very popular tourist district. and again, there is a hunt for the perpetrator. had put thel media perpetrator in a restaurant -- holing them out in a restaurant. we will keep you updated on this unfortunate and tragic story now with police confirming fatalities in barcelona throughout the afternoon on markets. this is bloomberg. ♪ ♪
welcome to "bloomberg markets: the trump economy."cut alone you please confirm that a van that plowed into people in barcelona was terrorism. terrorist protocol has been activated in the city. damage control -- attention shifts from ceos quitting president trump's advisory council to it key officials will quit their jobs. war --tions of economic senior strategy advisor steve bannon says economic war with china is the most important issue confronting the white house and the nation. -- ie david: we want to bring you the latest on this attack in spain. police have confirmed that the attack by a van is in fact terrorism.